Bankinter | Figures for 2024 (versus consensus): Premiums €28,122 million (up 4.5%) versus €27,781 million, Net profit €902 million (up 30%) versus €888 million, Non-Life Combined Ratio 94.4% vs 95.0%, Solvency 202.4% versus 197.6% at the end of 2023.
Bankinter analysis team’s opinion: Premiums grow solidly in 2024 (6.6% at constant exchange rates) to €28,122 million, beating expectations. The biggest surprise comes from the margins side. The Non-Life combined ratio stands at 94.4% (versus 97.2% in 2023), despite ongoing pressure on margins in the auto segment. This boosts the technical result which, along with the financial result, more than compensates for the decline in the Life segment’s results. Overall, net profit rises to €902 million (30%; versus €888 million expected). In short, the results exceed our expectations. Consequently, we reaffirm our Buy recommendation and put the Target Price under review as it has surpassed our previous Target Price (€2.75/share) following a strong start to the year. The arguments we have been defending that support this recommendation remain unchanged: (i) business diversification (segments and geographies) provides recurring results, (ii) we estimate a progressive improvement in margins (combined ratio) accompanied by a solid financial result, (iii) the level of Solvency is comfortable, allowing it to offer (iv) an attractive dividend yield (>5% 2025 estimated) in both absolute and relative terms, which we consider sustainable over time.
